I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

The saving grace is that it was purchased cheap a long time ago and will still either cash flow or yield equity even after repair costs

Doing it in December will not save you any taxes anyway.

This could save you money in the long run, but requires a bigger initial investment.To help you decide, consider these:What's your current budget?

If you paid under $230k, you’d save $30k in federal capital gains taxes and maybe another $15k or more in state income taxes.

You didn't save 40% you spent X that could have been used for marketing or growing your business

While metrics like square footage or price per square foot matter, the number of bedrooms, bathrooms, and overall location are often more critical for attracting tenants.Engaging a property manager early on can save you from costly mistakes and help you invest in properties that perform well in the rental market.

It’s saved me more than once from scrambling at the last minute!

If you owned a few thousand rental properties, you could argue that owning a private jet is a significant time saving tool and well worth the cost.

Eliminate debt, establish a budget, and save.